Chambers Ireland demands end to wage agreements

Chambers Ireland has today called for the abolition of Employment Regulation Orders (ERO) and Registered Employment Agreements (REA) in its submission to the Independent Review of ERO and REA wage-setting mechanisms.

“Chambers Ireland has long called for the abolition of those ERO and REA’s that no longer serve a rational purpose since the introduction of the National Minimum Wage (NMW) more than a decade ago,” said John Forde, Council Chair.

“Businesses continue to change their operating models in order to survive. If the new Government is serious about giving these businesses real supports, while continuing to focus on the restoration of Ireland’s competitiveness, these contracts should be abolished.

“The reduction in the NMW for new employees since February 1 was an important move that supports the economy’s ongoing reduction in the unit cost of labour and underpins cost-competitiveness. In order for Ireland to build on this, the new Government must abolish those ERO and REA’s that no longer serve any purpose.

“In addition, the consolidation of all employment and health and safety legislation into a simplified single act using the Taxes Consolidation Act of 1997 as a template would further enable Irish businesses to create and retain jobs.”

The national minimum wage was cut from €8.65 an hour to €7.65 an hour in Budget 2011.